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How to Incorporate in Kansas (May 2024 Update)

Meow Technologies, Inc.

Meow Technologies, Inc.

Incorporating a business in Kansas can provide your company with valuable benefits like liability protection and tax advantages. However, the incorporation process involves several key steps. This comprehensive guide will walk you through everything you need to know to successfully form either an LLC or a corporation in Kansas.

Choosing a Business Structure: LLC vs. Corporation

The first decision you need to make when starting a business in Kansas is whether to structure your company as a limited liability company (LLC) or a corporation. Both business structures provide personal liability protection, but there are some key differences:

Ease of Maintenance

LLCs generally involve less Complex paperwork and recording requirements than corporations. LLCs are not required to hold annual meetings, keep minutes, or issue stock certificates. Many small business owners are drawn to the simplicity of LLC maintenance.

Tax Treatment

LLCs are considered "pass-through entities" for tax purposes. This means the business itself does not pay taxes. Rather, profits and losses pass directly to the LLC members' personal tax returns. This avoids the "double taxation" issue faced by traditional C corporations. Corporations, however, may allow more flexibility regarding reinvestment of earnings.

Access to Capital and Investors

Corporations can make it easier to attract outside investment through the sale of stock. The corporate structure provides more familiarity and credibility for potential investors. LLCs often have restrictions in place regarding the transfer of ownership interests.

When weighing the pros and cons, many small or mid-sized Kansas companies opt to form LLCs to benefit from pass-through taxes and lower administrative burdens. But the corporate structure offers advantages for businesses aiming to eventually go public or raise outside capital from investors.

Steps for Incorporating in Kansas

If you decide to incorporate in Kansas, several key steps are involved:

Check Name Availability and Reserve Your Business Name

You'll first want to verify that your desired corporate name is available for use in Kansas. The Secretary of State website offers an online name search and reservation tool. Reserving a name secures the exclusive use of that name in Kansas for 120 days.

Appoint a Registered Agent

Kansas corporations must designate a registered agent on file with the state. This agent receives important legal and tax documents on behalf of the business. Many companies choose to work with a third-party registered agent service to ensure proper handling of all notifications.

File Articles of Incorporation

To legally form your Kansas corporation, you must file formal Articles of Incorporation with the Secretary of State. This document contains basic information about your company like corporate name, shares, directors, registered agent, and more. State filing fees for new Articles of Incorporation are $89 online or $90 by mail.

Draft Corporate Bylaws

Bylaws provide an outline for your corporation's operating and management procedures. Though bylaws do not get filed officially, they help establish administrative rules regarding stock, directors, officers, meetings, and more.

Hold an Organizational Meeting

Kansas statute requires new corporations to hold an initial organizational meeting. Shareholders or directors use this meeting to take actions like appointing company leadership, issuing stock certificates, and adopting bylaws. Official minutes should be recorded.

Obtain an EIN from the IRS

Even if you do not plan to have employees, your corporation will need a Federal Employer Identification Number (EIN) for tax and banking purposes. EIN applications are free and available on the IRS website.

Get Any Necessary Kansas State Tax Registrations or Licenses

Depending on your industry, location, and business activities, you may need to register for certain Kansas tax accounts. Common tax registrations include sales tax, payroll tax, liquor tax, and more. The Kansas Business Center website offers more information on licensing requirements based on your business type.

File for S Corporation Tax Status (Optional)

Standard C corporations face "double taxation" on business income. But S corporations receive tax pass-through treatment similar to partnerships and LLCs. To get S corporation tax treatment, you need to file Form 2553 with the IRS after incorporating.

Maintain Your Corporation by Filing Annual Reports

All Kansas corporations must submit annual reports to the Secretary of State. These reports confirm that your business information is current. Annual report fees are $50 online and $55 if filing by paper. Most corporation annual reports are due by April 15 each year.

Comparing Incorporation to Forming a Kansas LLC

Forming a Kansas LLC follows a similar process to incorporating but with some differences:

  • To establish an LLC, you file Articles of Organization instead of Articles of Incorporation. State filing fees for new Kansas LLC registration are $166.
  • LLCs use an Operating Agreement instead of corporate bylaws to outline member rights, allocation of profits/losses, voting procedures, etc.
  • Annual reporting for LLCs also costs $50 online or $55 for mailed paper forms, with most due by April 15 each year.

On the tax side, new Kansas LLCs receive pass-through taxation by default like a partnership or sole proprietorship. LLC income passes directly to members' personal returns. An LLC can elect to get taxed as a C or S corporation by filing additional IRS paperwork. Many small business owners view the pass-through treatment of LLCs as a tax advantage over corporations.

Conclusion - Get Started with Kansas Incorporation or LLC Formation

This guide summarizes the key steps involved in incorporating or forming an LLC in Kansas. Following the process ensures that your new business becomes officially compliant and gains benefits like liability protection.

Both LLC and corporate structures have pros and cons in Kansas related to taxes, investor access, administrative needs, and more. Evaluate your specific situation carefully to pick the right entity type.

Many companies also benefit by working with a specialized service provider to handle state filings, annual reports, and other compliance tasks smoothly. This frees you to focus energy on building your business.

Meow Technologies is a financial technology company, not a bank or FDIC-depository insured institution. Likewise, Meow Technologies is not an investment adviser and none of the information presented herein should be relied upon as financial advice or a recommendation to make any financial decision nor should it be considered to be tax or legal advice. The information is the opinion of Meow Technologies for educational purposes and may not be suitable for all companies. Products, like the one described herein, are offered through Meow Technologies and are not advisory services which are only offered through Meow Advisory, LLC.** The FDIC’s deposit insurance coverage only protects against the failure of an FDIC-insured bank.**

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*Disclaimer: Meow Advisory LLC is a registered investment adviser. Registration as an investment adviser does not imply any level of skill or training.
For accounts opened through Atomic Brokerage LLC: Meow Advisory LLC has an engagement with Atomic Brokerage LLC (“Atomic Brokerage”), a registered broker-dealer and member of FINRA and SIPC , to bring you the opportunity to open a brokerage account. Brokerage services for customers of Meow Advisory LLC are provided by Atomic Brokerage. For more details about Atomic Brokerage, please see the Form CRS, General Disclosures, and the Privacy Policy. Check the background of Atomic Brokerage on FINRA’s BrokerCheck.
For subadvisory services for accounts opened through Atomic Invest LLC: Meow Advisory LLC has an engagement with Atomic Invest, LLC (“Atomic Invest”), an SEC-registered investment adviser, to bring you the opportunity to open an investment advisory account. Investment advisory services are provided by Atomic Invest. Companies which are engaged by Atomic Invest receive compensation of 0% to 0.85% annualized, payable monthly, based upon assets under management for each referred client who establishes an account with Atomic Invest (i.e., exact payment will differ). Atomic Invest also shares a percentage of compensation received from margin interest and free cash interest earned by customers with Meow Advisory LLC. Meow Advisory LLC is not a client of Atomic Invest, but our engagement with Atomic invest gives us an incentive to refer you to Atomic Invest instead of another investment adviser. This conflict of interest affects our ability to provide you with unbiased, objective information about the services of Atomic Invest. This could mean that the services of another investment adviser with whom we are not engaged could be more appropriate for you than Atomic invest. Advisory services through Atomic Invest are designed to assist clients in achieving a favorable outcome in their investment portfolio. They are not intended to provide tax advice or financial planning with respect to every aspect of a client’s financial situation and do not include investments that clients may hold outside of Atomic Invest. For more details about Atomic Invest, please see the Form CRS, Form ADV Part 2A, the Privacy Policy, and other disclosures. Brokerage services for Atomic Invest are provided by Pershing Advisor Solutions LLC (“PAS”), a registered broker-dealer and member of FINRA and SIPC.
Neither Atomic Invest nor Atomic Brokerage, nor any of their affiliates, is a bank. Investments in securities are Not FDIC insured, Not Bank Guaranteed, and May Lose Value. Investing involves risk, including the possible loss of principal. Before investing, consider your investment objectives and the fees and expenses charged by Atomic Brokerage and/or Atomic Invest.
See the Legal Section within the Meow website for additional agreements.

U.K. Gilt pricing quoted net of fees. ~5% U.K. Gilt yield is sourced from Investing.com December 2023 6-month United Kingdom 6-Month Bond Yield. ~5% Treasury Bill yield is sourced from treasurydirect.gov December 2023 12-week U.S. Treasury Bill auction.

**Disclaimer: Meow Technologies is a financial technology company, not a depository, bank or credit union, and your account at Meow is not, itself, an FDIC-insured product.

Meow currently partners with three banking providers. Banking services are provided by Third Coast Bank SSB; Member FDIC, Grasshopper Bank, N.A; Member FDIC, and FirstBank, a Tennessee corporation; Member FDIC.

By opening a Maximum Checking account through Meow and if you choose to receive banking services provided by Grasshopper Bank, N.A, you deposit your funds into a deposit account at Grasshopper Bank, N.A. which sweeps those funds into deposit accounts across a network of Federal Deposit Insurance Corporation (“FDIC”)-insured banks, for up to the current standard maximum deposit insurance amount (“SMDIA”) of $250,000 per eligible depositor, per destination institution, for each ownership capacity or category, subject to applicable terms and conditions, including Grasshopper's ICS Deposit Placement Agreement. Grasshopper Bank, N.A. uses a third-party vendor and agent to help administer this sweep process. Visit https://www.intrafi.com/network-banks/ for a list of the banks and savings associations with which we/Grasshopper, N.A. have a business relationship for the placement of deposits at destination institutions, and into which your deposits may be placed (subject to applicable terms with you, and any opt-outs by Grasshopper, N.A. or you). The current maximum deposit insurance amount for your funds is up to $125 million in FDIC insurance through the sweep network of Grasshopper Bank, N.A, subject to change at any time with notice from Meow and/or pursuant to applicable law. Terms and restrictions apply. Subject to applicable rate sheet. Interest rate on checking products quoted in Annual Percentage Yield (APY). Interest rates and yields are effective as per the date on the applicable rate sheet. See applicable terms and restrictions and refer to the applicable rate sheets for additional information.

By opening a Maximum Checking account through Meow and if you choose to receive banking services provided by Third Coast Bank SSB, you deposit your funds into a deposit account at Third Coast Bank SSB. If you also hold funds in a sweep program with Third Coast Bank SSB, Third Coast Bank SSB sweeps those funds into deposit accounts across a network of FDIC-insured banks, for up to the current SMDIA of $250,000 per eligible depositor, per receiving bank, for each ownership capacity or category, including any other balances you may hold at that receiving bank directly or indirectly through other intermediaries, including broker-dealers. Third Coast Bank SSB uses a third-party vendor and agent to help administer this sweep process. Visit Third Coast Bank SSB for a list of the banks and savings associations with which we/Third Coast Bank SSB have a business relationship for the placement of deposits at receiving banks, and into which your deposits may be placed (subject to applicable terms with you, and any opt-outs by Third Coast Bank or you). The current maximum deposit insurance amount for your funds is up to $50 Million in FDIC insurance through the sweep network of Third Coast Bank, subject to change at any time with notice from Meow and/or pursuant to applicable law. Terms and restrictions apply. Subject to applicable rate sheet. Interest rate on checking products quoted in Annual Percentage Yield (APY). Interest rates and yields are effective as per the date on the applicable rate sheet. See applicable terms and conditions and refer to the applicable rate sheet for additional information.

By opening a Maximum Checking account through Meow and if you choose to receive banking services provided by FirstBank, a Tennessee corporation, you deposit your funds into a deposit account at FirstBank, which sweeps those funds into deposit accounts across a network of FDIC-insured banks, for up to the current SMDIA of $250,000 per eligible depositor, per destination institution, for each ownership capacity or category, subject to applicable terms and conditions, including FirstBank's ICS Deposit Placement Agreement. FirstBank uses a third-party vendor and agent to help administer this sweep process. Visit IntraFi for a list of the banks and savings associations with which FirstBank has a business relationship for the placement of deposits at destination institutions, and into which your deposits may be placed (subject to applicable terms with you, and any opt-outs by FirstBank or you). The current maximum deposit insurance amount for your funds is up to $125 million in FDIC insurance through the sweep network of FirstBank, subject to change at any time with notice from Meow and/or pursuant to applicable law. Terms and restrictions apply. Subject to applicable rate sheet. Interest rate on checking products quoted in Annual Percentage Yield (APY). Interest rates and yields are effective as per the date on the applicable rate sheet. See applicable terms and restrictions and refer to the applicable rate sheet for additional information.

***FDIC insurance coverage is only available to protect you against the failure of an FDIC-insured bank that holds your deposits (and does not protect you against the failure of Meow or other third party). Your account with Meow and all services provided to you are subject to the Meow Terms of Service (“Account Agreements”) and other applicable terms and no other representations or warranties, express or implied, are provided to you except as expressly set forth in those written Account Agreements. If you have any questions regarding your account, please contact team@meow.com.

FirstBank Funds Availability Notice

FirstBank’s general policy is to allow you to withdraw funds deposited in your account on the first business day after the day we receive your deposit. Funds from electronic deposits will be available on the day we receive the deposit. In some cases, we may delay your ability to withdraw funds beyond the first business day. Then, the funds will generally be available by the SECOND business day after the day of deposit.